Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.

There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Sunday, 13 November 2016

Embrace the Inevitable


What  is   Inevitable  ?


*  From 01 April 2017 , introduction of a Rs 10,000 denomination currency note , duly embedded with RFID chip


*  From 01 Oct 2017, withdraw current ( newly introduced ) notes of Rs 500 / 2,000 , ie these will cease to be legal tender from that date


*  Do not introduce replacement of Rs 1,000 note , currently under planning


*  Let current ( new ) notes of Rs 500 / 2,000 , co-exist / overlap ( during April-Oct 2017 ) , with Rs 10,000 RFID embedded note



Why  Embrace  ?

*  We want to permanently eliminate BLACK MONEY and CORRUPTION

*  We want our economy to move from a 2 % non-cash transaction to a 96 % non-cash transaction

*  We want this transition to happen by Dec 2017

*  Such a rapid transition is not possible to be achieved by relying on increased usage of Electronic Transfers / Mobile Payment Wallets / Credit - Debit cards / RuPay / UPI etc



How  will Rs 10,000 currency note achieve such transition in ONE year  ?


*  Embedding RFID chip in Rs 10,000 note , practically turns it into a Credit Card !

   Whereas it is not possible for any issuing agency to issue a BILLION plastic credit cards - one to each Jan Dhan Bank account holder -, there is no problem for government / RBI to print and issue , a BILLION notes of Rs 10,000 ( duly embedded with RFID chip )



Can a RFID embedded Rs 10,000 note succeed in capturing all the data which a Credit card transaction manages to capture ?


*  Sure , a RFID embedded note too will capture ALL the data such as :

   >  Details of " spender / giver " of that note

   >  Details of " Recipient " of that note

   >  Date / Time / Amount of that transaction

   >  Details of " Goods / Services " involved

   >  Details of taxes paid ( Sales Tax / VAT / GST etc )


  
#   How will such captured DATA get transferred to Servers of IT / ED / RBI  ?


*   Each " giver " and each " receiver " of Rs 10,000 note will need to install in his smart phone , a IT Dept issued Mobile App ( called , VERIFIER )

*   Mobile app will have provision to enter details of this CASH transaction

*  When that Rs 10,000 note is placed flat on the screen of the mobiles ( of both the parties      ) , the data will get transmitted through internet , including the note serial number



Will embedding RFID serve any other purpose ?


*  That is the BEAUTY of RFID chip !

    It will communicate to IT / ED / RBI etc , of any accumulation of ( say ), ONE THOUSAND or more number of such notes , in an area of 1 Sq Meter , anywhere in India !

So , Black Money will have  NO PLACE TO HIDE  !

And , this continuous / constant tracking of each and every note of Rs 10,000 , can even help determine the MONEY VELOCITY / Currency Maps  !



#  Will this avoid the pain / difficulty / harassment being faced by ordinary citizens during the past 5 days  ?


*  Yes , of course  !

    Since there will be an overlap ( concurrent existence ) of high denomination notes for a 6 month period ( April - Oct 2017 ) , both types of notes will continue to be accepted as legal tender and there will be no disruption of day-to-day activities of buyers and sellers

This overlap will give enough time for RBI / Banks to fill up 4,000 " Currency Chests " located around the country , as also modify / fill up , 2 lakh ATMs



Will Government need to keep as a " closely guarded secret " , the introduction of RFID embedded notes of Rs 10,000  ?


*  No need ! Let the black money holders try whatever tricks they want !

    After 01 Oct 2017 , the only CASH they can hide , will be either Rs 100 notes ( just impossible ) or Rs 10,000 notes which " Announce their GPS location " and cry ,



{  http://myblogepage.blogspot.in/2016/08/help-please-rescue-me.html  }


What about crores of rupees that the Government just spent over the past 6 months , in printing the new notes of Rs 500 / 2,000  ?

*  Let us treat it as a price that we paid , in the experimental process of trying to Banish the Black !

Remember , this ( NDA ) is one government which encourages its officers to take honest and bold decisions , even if these turn out to appear as " mistakes " , in retrospect !

If and when they are convinced that they may have made an honest mistake , they do not hesitate to make a course-correction ! All in the interest of the Nation

Honest mistakes of " Commission " are better than the sins of " Omission , flowing from No Decisions !



Is it very expensive to embed RFID chips in plastic notes  ?


*  Here is what Sanjay Sarma ( a prominent researcher of RFID technology ) has to say :

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25  March , 2016

Dear Mr. Parekh,

Yes, placing tags on money has certainly been considered in the past.  I think it is a matter of time before it happens. I do agree with your idea. 

----------------------------------------------------------------

13  Nov  2016

Hi Hemen,

It can be brought down to about 3-5 cents with scale.

Meanwhile check out a variant of the technology which is cheaper:



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14  Nov  2016

www.hemenparekh.in / blogs


1 comment:

  1. From the above comprehensive summary of what needs to be done, as a course correction for the gigantic and chronic problem of India, none should have any doubt about its benefits on implementation. What makes me very optimistic of the outcome of implementing this idea in toto is the near-perfect combination of these three factors : _/ An alert, determined & highly-focused leadership of the PM of India, not just of the ruling party _/ An equally 24x7x365 professional, inspired, proactive, comprehensive in generating practical yet tech-savvy futuristic solutions finder in Mr.Hemen Parekh and _/ A hugely supportive general public across all segments of the society, impressed by the dynamism of a PM who is simultaneously respected & recognized by the world leaders. May this be turning point in free India’s history.

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